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Caterpillar Inc. Message Board

  • bluecheese4u bluecheese4u Jan 25, 2008 8:39 AM Flag

    Global Strength Powers Caterpillar to Record Sales & Profit

    Global Strength Powers Caterpillar to Record Sales & Profit

    Company Reaffirms 2008 Outlook for Another Year of Record Sales and Profit

    2008 outlook: sales and revenues up 5 to 10 percent,
    profit per share up 5 to 15 percent

    PEORIA, Ill.� Caterpillar Inc. (NYSE: CAT) today announced the fifth straight year of record sales and revenues and the fourth consecutive year of record profit. For 2007, sales and revenues were $44.958 billion, up 8 percent, and profit per share was $5.37, up 4 percent from 2006. The company also reported record fourth-quarter sales and revenues of $12.144 billion, 10 percent higher than the fourth quarter of 2006, and profit per share of $1.50, up 14 percent from a year ago.
    �Our broad global footprint has enabled us to benefit from strong economic growth outside the United States, as global markets for mining, energy and infrastructure development are booming,� said Chairman and Chief Executive Officer Jim Owens. �I�m very pleased with our overall 8 percent growth in sales and revenues in a year when end markets in the United States were so weak. When you consider that North American dealers took machine inventories down $1.1 billion in 2007, our sales story is even more impressive.�
    For the year, sales and revenues increased $3.441 billion�$1.271 billion from higher sales volume including $775 million from the acquisition of Progress Rail, $932 million from improved price realization, $890 million from the effects of currency and $348 million from higher Financial Products revenues. 2007 profit reflected price realization and higher sales volume offset by higher core operating costs. Machinery and Engines operating cash flow of $5.446 billion was up 18 percent from 2006 and was an all time record. As a result of record Machinery and Engines operating cash flows over the past three years, our financial position remained very strong with a year-end debt-to-capital ratio for Machinery and Engines of 31.2 percent.
    For the fourth quarter, sales and revenues increased $1.141 billion�$392 million from improved price realization, $334 million from the effects of currency, $306 million from higher sales volume and $109 million from higher Financial Products revenues. Fourth-quarter profit increased $93 million. The increase was due to improved price realization and higher volume, partially offset by higher core operating costs.

    In 2008, the company expects another record year with sales and revenues increasing 5 to 10 percent and profit per share increasing 5 to 15 percent from 2007.
    �It�s gratifying to be able to maintain an outlook for 2008 that reflects continued growth and all-time records for sales and revenues and profit at a time when we�re expecting recessionary conditions to persist in key markets we serve in the United States. We�re starting 2008 with a very strong order backlog, particularly for larger products like industrial gas turbines, large reciprocating engines and mining trucks,� Owens commented. �While we expect anemic growth in the U.S. economy, we continue to see positive conditions for our sales in most of the rest of the world.
    �In 2008, we�ll be stepping up Research and Development (R&D) for new products and capital investment to increase capacity around the world. We expect the world�s robust investment in infrastructure to continue well into the next decade, and we�ll need more capacity to serve our customers. Our internal focus will be on continuing our global deployment of the Caterpillar Production System (CPS) with 6 Sigma. While we�ll face challenges in 2008, I�m confident Team Caterpillar will continue to drive us toward our 2010 goals.�

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